Shopping Centres (ASX:SCP) strikes acquisition deals worth A$180M with Primewest

Image Source: © Utah778 | Megapixl.com

Highlights

  • Shopping Centres Australasia Group will be acquiring five convenience-based shopping centres in Australia
  • The acquisition is likely to complete in July 2022
  • Shares of SCA Property Group began trading in green today, backed by this announcement 

The shares of Shopping Centres Australasia Property Group (ASX:SCP) were spotted trading 0.375% higher at AU$2.69 per share at 10:39 AM AEST on the ASX today (20 June). More than 321K shares of Shopping Centres were traded within the short span of time after the ASX opened for trading on Monday morning. 

The ASX-listed Real estate investment trust announced that it has entered into an agreement with Primewest, a subsidiary of Centuria Capital Group (ASX: CNI), to acquire five convenience-based shopping centres in Australia at a cost of AU$180 million. 

Details of the agreement: 

The above-mentioned purchase price represents a weighted average fully let yield of 6.0%, the company said. The acquisitions are expected to complete in early July 2022.

According to the agreement with Primewest, Shopping Centres will be acquiring the following assets:

  • Dernancourt Shopping Centre in South Australia.
  • Fairview Green Shopping Centre in South Australia.
  • Brassall Shopping Centre in Queensland.
  • Port Village Shopping Centre in Queensland.
  • Tyne Square Shopping Centre in Western Australia.

After the completion of these acquisitions, Shopping Centres will be owning and managing around AU$4.6 billion in convenience-based shopping centres, securing its position as the leading convenience-based retail specialist in Australia.

Image source: © Linqong | Megapixl.com

Furthermore, the company also expects to add value to the acquisition portfolio through its active asset management and leasing capabilities.

Shopping Centres also informed that its acquisitions would be debt-funded using existing undrawn bank facilities. The company also revealed its intention to enter into an underwriting agreement with MA Moelis Australia Advisory Pty Ltd to underwrite a DRP take-up rate of 50% of the final June 2022 distribution.

Also read: Is online shopping more sustainable?

How have shares of Shopping Centres performed?

The share price of Shopping Centres has gained over 6% on the ASX over the past 12 months. However, on a year-to-date (YTD) basis, Shopping Centres’ shares are down nearly 11% (as of 10:39 AM AEST on the ASX today, 20 June).


 


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